Penultimate draft; please refer to published version. I argue, on philosophical, psychological, and neurophysiological grounds, that contrary to an orthodox view, dreams do not typically involve misleading sensations and false beliefs. I am thus in partial agreement with Colin McGinn, who has argued that we do not have misleading sensory experience while dreaming, and partially in agreement with Ernest Sosa, who has argued that we do not form false beliefs while dreaming. Rather, on my view, dreams involve mental imagery and propositional imagination. I defend the imagination model of dreaming from some objections